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What's wrong with SaaS?

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The software as a service market is still in a state of flux and before SaaS can reach its full potential, service providers must overcome integration, customization and brokerage issues.

Gartner pegs total worldwide software revenue at $267 billion in 2011 and expects it to hit $288 billion this year. But Gartner puts worldwide SaaS revenue at only $12.3 billion and $14.5 billion, respectively, which comes out to less than 5% of annual software sales.

“At 10 years old, or 10 years young — however you want to specify its age — SaaS has the power to change everything. It should be viral, like a really hilarious YouTube video. And it just isn’t. Why not?” asks Jason Currill. He is CEO of Ospero, a U.K. startup looking to use its VMware cloud running on an infrastructure-as-a-service (IaaS) platform to build a better SaaS delivery channel across Europe.